The Australian Tax Office admits the JobKeeper forms 'could have been clearer', after confusion over the first question resulted in the estimated budget being out by $60 billion dollars.
The Australian Tax Office admits the JobKeeper forms "could have been clearer", after confusion over the first question resulted in the estimated budget being out by $60 billion dollars. A significant reporting error has led Treasury to dramatically revise its projections for the Morrison government's JobKeeper program.
The scheme, which sees the government pay $1,500 fortnightly in affected workers' wages, was originally expected to cover around 6.5 million employees at a cost of $130 billion. But late Thursday, the Treasury and Australian Tax Office were forced to admit to the Morrison Government those projections were wrong. As a result, Treasury's revised estimate of the cost of the JobKeeper program is now just $70 billion which is $60 billion less than the original forecast.
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JobKeeper mistake ‘is actually good news for Australian taxpayers’: Frydenberg | Sky News AustraliaSky News host Chris Kenny says “staggering developments” have emerged following the Treasury’s announcement of a 'massive' $60 billion JobKeeper mistake which he discussed in an exclusive interview with Treasurer Josh Frydenberg. \n\nA significant reporting error has led Treasury to dramatically revise its projections for the Morrison government's JobKeeper program. \n\nThe scheme, which sees the government pay $1,500 fortnightly in affected workers' wages, was originally expected to cover around 6.5 million employees at a cost of $130 billion. \n\nBut late Thursday, the Treasury and Australian Tax Office were forced to admit to the Morrison government those projections were wrong.\n\nAs a result, Treasury's revised estimate of the cost of the JobKeeper program is now just $70 billion which is $60 billion less than the original forecast. \n\nTreasury now expects the number of employees likely to be covered under JobKeeper program to be around 3.5 million, around 3 million less than forecast.\n\nTreasurer Josh Frydenberg said the “reality is” this was an “unintentional error by a thousand businesses”.\n\nHe said the initial forecast done by Treasury was done at a time when the number of coronavirus cases were on the rise in the nation but said this result “is good news for the Australian taxpayer”. \n\n“It’s good news that the Australian economy hasn’t deteriorated in the way Treasury initially predicted”. \n\n“Nobody should be seeking to blame Treasury or the ATO, we should just be accepting that this is a mistake, it was an unintentional one”. \n\nMr Kenny said the whole “massive” mistake has raised “a range of questions” over the government’s budget which now faces $60 billon less debt than expected. \n\nHowever, “the good news was that it means we’re $60 billion better off than we thought,” Mr Kenny said. \n\nImage: News Corp Australia
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Revised JobKeeper projections 'are a great result for Aussies' | Sky News AustraliaTasmanian Senator Eric Abetz says Treasury's revision on JobKeeper projections is actually 'fantastic' and is 'a great result for the Australian people'. \n\nA significant reporting error has led Treasury to dramatically revise its projections for the Morrison government's JobKeeper program. \n\nThe scheme, which sees the government pay $1,500 fortnightly in affected workers' wages, was originally expected to cover around 6.5 million employees at a cost of $130 billion. \n\nBut late Thursday, the Treasury and Australian Tax Office were forced to admit to the Morrison government those projections were wrong.\n\nAs a result, Treasury's revised estimate of the cost of the JobKeeper program is now just $70 billion which is $60 billion less than the original forecast. \n\nTreasury now expects the number of employees likely to be covered under JobKeeper program to be around 3.5 million, around 3 million less than forecast.\n\nMr Abetz told Sky News host Chris Kenny 'the important is if you make errors, make them in the way it was done in this occasion'. \n\nHe said the 'worst thing' that could have happened is if the nation had to spend over predicted estimates, as opposed to what has happened in this instance. \n\nImage: Getty
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Contingency needed for JobKeeper end: Labor | Sky News AustraliaShadow Employment Minister Brendan O’Connor says the government must outline its contingency plans for businesses kept alive by JobKeeper when the program ends in September in case the economy stalls in its recovery. \n\nThe government’s wages scheme, along with it’s the increase to the JobSeeker welfare payment, conclude on September 30, fuelling concerns the end of the scheme is only delaying a sharp increase in the unemployment rate. \n\nMr O’Connor told Sky News despite easing restrictions, Labor remains concerned for those employed in sectors, such as aviation, that will taker longer to open back up. \n\n“Our concern would be sectors that would not be opening up very quickly, like aviation, and further beyond the end of JobKeeper and JobSeeker packages, how will businesses survive if they are still dealing with this issue full on in front on,” he said. \n\n“There has to be at least some contingency plans of government to deal with those issues now and deal with the potential challenges we will face at the end of September.”\n\nWhen asked if he would like to see the programs extended, the Labor frontbencher said that was the government’s problem to solve. \n\n“I think the government should come up with its proposals. It has access to treasury, it has access to government agencies, I think it has, should have, a really good picture of what is happening in the labour market and the economy,” Mr O’Connor said. \n\n“We will work with the government but it is up to them to come up with the precise options.”\n
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'Misunderstood question' caused $60 billion JobKeeper estimate blunderA confusing question on the JobKeeper scheme enrolment form led the Australian Tax Office to overestimate the cost of the scheme by $60 billion and its coverage by 2.5 million workers. 9News
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Budget bottom line to benefit from JobKeeper bungle, but economists say the money could be better spentThe JobKeeper bungle now means the Federal Government is essentially $60 billion richer, which is good news for the budget's bottom line.
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Number of Australians on JobKeeper revised down by 3 million due to 'significant' reporting errorBREAKING: Treasury has revealed the number of Australians receiving the JobKeeper allowance has been grossly overestimated.
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